On June 5, 2026, the leveraged gold miners ETF NUGT fell 17.27% in a single session due to a strong U.S. jobs report that pushed Treasury yields higher, making gold less attractive. The unleveraged gold miners ETF GDX dropped 8.75%, and gold bullion itself fell 3.27%. This sharp decline illustrates the amplified effect of 2x daily leverage combined with miners' operational leverage to gold prices. The market reaction was driven by expectations of Federal Reserve rate hikes, which increase the opportunity cost of holding non-yielding gold. Going forward, NUGT's performance will depend on labor market data, Fed policy signals, central bank gold purchases, and geopolitical risks. Until yields retreat, leveraged gold miners ETFs like NUGT may remain volatile and prone to sharp losses.
